A senior policymaker at South Korea's central bank indicated on Thursday that the institution will evaluate both domestic and external conditions—including the impact of two recent rate increases—before determining the timing and pace of any further monetary tightening.

Kim Jong-hwa, a member of the Bank of Korea's monetary policy board, stated in the central bank's semi-annual monetary policy report that it is necessary to examine shifts in the domestic and international landscape to decide when and how quickly to raise rates again.

He noted that economic growth is expected to remain robust, while inflation is likely to stay above target for a considerable period, citing pressures from Middle East conflicts and the ongoing export boom as the most critical factors. The board member also stressed that the effects of the previous two rate hikes will be closely monitored.

The Bank of Korea's report highlighted that global investment in artificial intelligence has been the key driver behind the country's semiconductor export surge, with expectations that such investment will continue expanding for an extended period amid rising demand and intensifying competition.

Last month, the central bank raised its benchmark interest rate by 25 basis points to 3.00 percent, marking its second consecutive increase, as inflation readings have persistently exceeded target levels and financial stability risks remain present.